The fact that food prices have skyrocketed recently is due to many different factors – including different regulations and fees. But many of these have been counterproductive, unnecessary and should be removed to bring food prices down, according to a new report by national economist Stefan Fölster.
– It would be possible to lower food prices by 16 percent and that is approximately SEK 2,000 for an ordinary family’s food purchases during December, he says.
The war in Ukraine, the weak krona and increased energy prices – the factors that have driven up food prices are many. This is shown in a new report that national economist Stefan Fölster has produced on behalf of the Swedish Grocery Store and which was published on Friday.
But there are several measures that could push prices down again. In the report, Stefan Fölster has calculated how the food trade would be affected if around fifty regulations and fees, which he believes are unnecessary and counterproductive, were instead removed.
– Then it would mean that food prices fall by 16 percent and that is approximately SEK 2,000 for an ordinary family’s food purchases during December, he says.
“Very ineffective”
It concerns both large and small fees and regulations. For example, it has been seen that municipalities’ fees for checking grocery stores have increased three times as much as inflation, according to Stefan Fölster.
– In addition, all municipalities do it in different ways and in addition there are ten state authorities that also carry out checks. So it becomes very inefficient and if municipalities and authorities were to coordinate it would be much easier and cheaper. Then food prices would also be cheaper, he says.
A lot of municipalities also do not allow the establishment of new grocery stores that compete with already existing ones, according to Fölster.
– And in these places there will be less competition and fewer discount stores. That alone can raise food prices on average by about 5 percent for the country, he says.
Can be simplified
The state and municipalities should therefore roll back certain regulations while others should be simplified and made more efficient, according to Stefan Fölster.
– The state could get hold of the laws that increase costs unnecessarily, start doing impact analyzes when introducing new laws and introduce laws that improve competition, says Fölster.